Vesuvius Plc releases AGM Trading Update

2016-05-13

May 12, 2016 - Vesuvius plc, a global leader in molten metal flow engineering, releases the following Trading Update in conjunction with its Annual General Meeting being held today.

SUMMARY

Overall market conditions remain unchanged since we announced our 2015 Full Year Results at the beginning of March with lower year-on-year global steel production and mixed end markets in our Foundry Division. We continue to make good progress with our self-help and restructuring actions as evidenced by the decision in April to close the Flow Control plant in Ostrawa, Czech Republic. As communicated at the beginning of March, restructuring will deliver benefits of £20m per annum by the end of 2017. We expect the underlying trading environment for the balance of the year to remain similar to that experienced in the second half of 2015, and our trading performance to be in line with current full year expectations.

STEEL

According to the World Steel Association global steel production was 3.6% lower in the first quarter of 2016, compared to the same period last year, and 0.1% higher than the fourth quarter of last year.

The World Steel Association publishes monthly steel production figures approximately three weeks after the end of the month. As at 12 May 2016, the most recent data available is for the three-month period to 31 March 2016.

FOUNDRY

Market conditions in the global foundry industry have remained mixed with year on year quarterly declines in mining, agriculture and construction markets in the US, Brazil, Australia and South East Asia. In contrast to this light vehicle production increased in Europe and NAFTA, and truck output also increased in Europe.

FINANCIAL POSITION

We continue to operate with a strong balance sheet and are maintaining our focus on cash generation through prudent management of our working capital and capital investments.

OUTLOOK

As announced at our Full Year Results, we expect the underlying trading environment to remain similar to that experienced in the second half of 2015. Whilst it is relatively early in the year, we anticipate that our trading performance, supported by the ongoing benefit of our restructuring actions, will be in line with current expectations for the full year. We remain confident in our ability to capitalise on any recovery in our addressable markets in the medium term.

CONFERENCE CALL

François Wanecq (Chief Executive) and Guy Young (Chief Financial Officer) will be hosting a conference call for analysts and investors at 09.00 (UK time) today (12 May).

ANNUAL GENERAL MEETING

The Group's Annual General Meeting is being held today at 11.00 (UK time) at The Lincoln Centre, 18 Lincoln's Inn Fields, London WC2A 3ED.

FUTURE EVENTS

The Vesuvius final 2015 dividend of 11.125 pence per share will be paid, subject to approval at the Annual General Meeting, on 20 May 2016 to shareholders on the register as at 8 April 2016.

Vesuvius' half year results for the six months ending 30 June 2016 are expected to be announced on Thursday, 28 July 2016.

About Vesuvius plc

Vesuvius is a global leader in molten metal flow engineering principally serving the steel and foundry industries.

We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to improve their manufacturing processes, enhance product quality and reduce energy consumption. These include flow control solutions, advanced refractories and other consumable products and - increasingly - related technical services including data capture.

We have a worldwide presence. We serve our customers through a network of low-cost manufacturing plants located close to their own facilities, and embed our industry experts within their operations, who are all supported by our global technology centres.

Our core competitive strengths are our market and technology leadership, strong customer relationships, well established presence in developing markets and our global reach, all of which facilitate the expansion of our addressable markets.

Our ultimate goal is to create value for our customers, and to deliver sustainable, profitable growth for our shareholders giving a superior return on their investmentwhilst providing each of our employees with a safe workplace where he or she is recognised, developed and properly rewarded.